MoD to establish air safety body
An air safety body to regulate and audit military aviation is to be set up in the aftermath of the 2006 Nimrod MR2 crash over Afghanistan, in which 14 UK service personnel were killed.
Financial Times

U.S. House approves $636 billion military spending bill
The U.S. House of Representatives approved a $636 billion military spending bill on Wednesday that funds the wars in Iraq and Afghanistan, and also includes money to extend jobless aid for two months.

Vietnam Agrees to Buy Subs, Planes From Russia
Vietnam and Russia signed a major arms deal and a nuclear energy agreement Dec. 15, a sign of reviving ties between Moscow and its former Soviet-era ally in Southeast Asia.
Defense News

EADS eyes mid-cap U.S. acquisitions
Airbus parent EADS is still interested in making U.S. acquisitions and plans to keep growing regardless of the outcome of an aerial tanker contest with Boeing Co, the European company's top U.S. executive said on Wednesday.

Military demand for unmanned aircraft grow
The U.S. aerospace industry on Wednesday forecast that military demand for unmanned aircraft would double over the next five years after rising 600 percent since 2004.

Boeing gets $704.4 mln U.S. army helicopter contract
Boeing Co has received a $704.4 million U.S. Army contract to build 21 new and 14 remanufactured Ch-47F Chinook helicopters, the Defense Department said on Wednesday.

RAF officers investigated over Nimrod crash
Two senior RAF officers criticised in a devastating report into the crash of an Nimrod aircraft over Afghanistan with the loss of all 14 people on board are being investigated by military police.
The Guardian

UK helicopter-making under threat as MoD nods to Boeing
Britain's ability to build helicopters could come to an end within ten years after the Ministry of Defence switched a contract to the Americans as part of its latest round of budget cuts.
The Times